ICONOS FINALES-TRAZADOS

Instrumental companies: sanctions

Translation generated by AI. Access the original version

The sanction for having an instrumental company must be calculated on the difference between the unpaid contribution by the partner and the contribution paid by the company.

Instrumental companies: sanctions

The tax authority conducts many inspections on professional or artistic companies, as it considers that many of them are "instrumental" –they are only established so that the profits are taxed under the Corporate Tax (IS) and not under the Personal Income Tax (IRPF), whose marginal rate is much higher–. In those cases, the tax authority verifies who has the human and material resources that allow the services to be provided. If the company lacks the structure for this (or does not allocate it to such services), it is when it is considered that there is simulation and that the company is instrumental.

When the tax authority concludes that a company is instrumental, it does the following:

  • It calculates the IRPF contribution of the partner(s), attributing to them all the income and expenses of the company; that is, as if the company did not exist.
  • At the same time, since it considers that the company is a mere simulation and therefore has not carried out any activity, it refunds the contributions paid for the IS.

In addition, in these cases, the tax authority can impose a sanction of between 50% and 150% on the contribution that was not paid.

Well, the Supreme Court has established that the calculation base for this sanction is not the unpaid IRPF contribution by the partner, but the difference between that contribution and the IS contribution paid by the interposed company regarding the same income.

 

We will advise you on the inspection procedures that your company is subject to and we will defend your interests against the tax authority.

Newsletter

* Required fields

DATA PROTECTION INFORMATION

Controller

ECONOMIC BUSINESS SYSTEMS CONSULTING, S.L.

Purposes

Management of and contact with users; The data requested through the contact form, sent by email or provided by telephone published on our website will be used to answer your enquiry and to send you information about our organisation and services. The consequences of not providing us with this data will be the impossibility of contacting you and providing a response to your request. You have the right to receive a response to any question, enquiry or clarification arising from this form or from the other means of contact published on the corporate website, by calling us, sending us an email or visiting our premises.

Legal basis

(Art. 6.1.a GDPR) Consent of the data subject; (Art. 6.1.f GDPR) Legitimate interest of the Data Controller or third parties. Organic Law on the Protection of Personal Data and the Guarantee of Digital Rights (LOPDGDD) 3/2018, Regulation (EU) 2016/679 on the protection of personal data

Retention

Other. We keep your data only for the time necessary to handle the information request or if there is any legal obligation or legitimate interest in this respect.

Recipients

We do not transfer your data to anyone, but we may allow its processing by third parties solely for technical, legal and/or service-provision reasons.

International transfers

There is no provision to carry out international transfers of your personal data

Rights & more info

the email nfernandez@ebserco.com or at our premises located at Calle Sant Pelegri, 109, 25300 Tàrrega (Lleida) Spain.

You can access the legal notice and the full information here

Drag the arrow into the white box to activate the button

RELATED CONTENT